Many price points, many products.
Many price points, many products.
The way it sounds to me, SJSU and Udacity and are going to take the time to study the data and figure out why it is that so many students failed. If, and this seems pretty likely to me, it turns out that the students were confused about the product (the courses) then I would imagine that steps will be taken to clarify things so that people can make choices that will lead to the best-possible outcomes.
Many price points, many products doesn't work if people don't understand the products.
The latest round of MOOCs are not really monetizing educational content (which is and has been online elsewhere, often for free). They are packaging institutional prestige, the same dynamic Facebook used to drive student adoption. Khan Academy is the exception.
I also think Udacity is more in between Khan Academy and Coursera, in that Udacity tries to find new ways of online instruction.
Also, just because some people are unable or unwilling to absorb and understand some knowledge does not make that knowledge and the way it is presented invalid or useless.
So every time a course like this is canceled because "half the customers are rejecting the product", another nail is driven into the coffin of education.